Hot stock: UOL surges 2.6% on analysts buy calls
UOL Group climbed 2.6 per cent on Wednesday after several analysts issued a buy call on the property-related stock.
After hitting S$7.45 a share, UOL was trading around S$7.44 a share, up 18 Singapore cents, or 2.45 per cent, at 01:17pm.
Credit Suisse Equity Research recently initiated coverage on UOL with an outperform call and a target price of S$9.00 a share.
The research house said,"With valuation at an attractive 0.69 time price to book, steady earnings growth from recognition of locked-in residential sales and its recurring income base, and control over United Industrial Corporation (UIC) a key catalyst, UOL is our preferred play on the continued recovery in Singapore's residential market.
"We believe the recovery in the Singapore residential market is at its nascent stage, and we remain positive on the sector outlook."
It added that UOL is well poised to ride the upcycle, given its astute landbanking ability and strong project execution capabilities.
"This is complemented by its sizeable recurring income base, which at 85 per cent of assets in 2016 is the highest among its peers; it is contributing to earnings stability."
UOL is also among Maybank's top "buy" picks, with a target price of S$9.05 a share. Maybank sees the stock as the best proxy for a price rebound in Singapore. CIMB, too, has an "add" call on UOL, with a target price of S$7.96 a share.
"We like UOL for its diversified business model and strong recurrent cash flow. Key catalysts for share price performance are good sustained sell-through rates for its residential projects,'' CIMB said.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Asia: Markets track Wall Street higher as rate hopes rise, eyes on US jobs
H2G Green chief to stand trial on Aug 5 amid MOM probe
Singapore shares climb at Friday’s open; STI up 0.2%
Stocks to watch: DBS, KIT, Clint, Elite Commercial Reit
Europe: Shares ease after Federal Reserve decision, mixed earnings
US: Tech shares lead stocks higher